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Source Business Associations Complete Wisconsin Bar Exam Topic Index List Matched to this deck.

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A bicycle-shop owner introduced Lila to a parts dealer as "our general manager" and let Lila sign monthly inventory contracts for a year. The owner privately told Lila not to place any order over $8,000 without approval. Lila later signed a $9,500 order for ordinary replacement chains and tires. The dealer had no notice of the private limit.
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The dealer wins only if the manager also had authority to sue in court. The dealer has a strong apparent-authority argument because the owner held the manager out as general manager and allowed her to sign similar ordinary inventory contracts. The dealer loses because apparent authority can arise only from a written power of attorney. The dealer loses because the owner's private instruction automatically controls even if the dealer had no notice.

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